The tariff classification of surface covered plywood panels from China

N247265 November 27, 2013 CLA-2:44:OT:RR:NC:2:230 CATEGORY: Classification TARIFF NO.: 4412.32.5600 Ms. Cynthia Rapp Birch SUS Company, LLC 4745 N. 7th St. Suite 222 Phoenix, AZ 85014 RE: The tariff classification of surface covered plywood panels from China Dear Ms. Birch: In your letter dated October 28, 2013, you requested a tariff classification ruling. The ruling was requested on surface covered plywood panels. Photos and documentation were submitted for our review. You identify the product as being a three-ply plywood panel. The non-coniferous wood veneer face is overlaid with a sheet of kraft paper. The veneer back is uncovered. You indicate that the product will range in thickness from 5mm to 9mm, and will be imported in 4’ x 4’ and 4’ x 8’ sheets. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the Harmonized Tariff Schedule of the United States (HTSUS) by offering guidance in understanding the scope of the headings and the General Rules of Interpretation. While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989). The instant products meet the definition of “plywood” as set forth in the ENs to heading 4412 of the HTSUS, i.e., it is a panel constructed of “three or more sheets of wood glued and pressed one on the other and generally disposed so that the grains of successive layers are at an angle.” The kraft paper applied to the face of the product constitutes a surface covering, as described in Additional US Note 1(c) to Chapter 44, HTSUS: “The term "surface covered," as applied to the articles of headings 4411 and 4412, means that one or more exterior surfaces of a product have been treated with creosote or other wood preservatives, or with fillers, sealers, waxes, oils, stains, varnishes, paints or enamels, or have been overlaid with paper, fabric, plastics, base metal, or other material.” In your letter, you suggest that the goods are classifiable in subheading 4412.32.5600, HTSUS. We agree with this suggestion. The competing subheadings within 4412.32, HTSUS, describe plywood which is “Not surface covered, or surface covered with a clear or transparent material which does not obscure the grain, texture, or markings of the face ply,” and “Other”. The instant product is covered on its face with a paper layer which fully obscures the grain of the wood beneath. As such, it does not meet the terms of “not surface covered”. It is also not surface covered with a clear or transparent material that doesn’t obscure the grain of the wood, and therefore is not described by the second portion of the language. As such, classification must be in the next equal subheading, or “Other”. This classification is further supported by New York rulings N049017, L84747, and L87071. The applicable subheading for the surface covered plywood panels will be 4412.32.5600, HTSUS, which provides for Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm in thickness (con.): Other, with at least one outer ply of nonconiferous wood: Other (than Not surface covered, or surface covered with a clear or transparent material which does not obscure the grain, texture or markings of the face ply). The rate of duty will be 8 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Laurel Duvall at (646) 733-3035. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division